An Administrator's Guide to California Private School Law

Chapter 6 – Wage And Hour Laws

Section 9 A SSIGNMENT O F W AGES The Labor Code contains very detailed requirements for an employee to assign a portion of his wages to another person or entity. 742 An employee may not assign more than 50% of his wages. 743 The restrictions prohibit the school from paying out to “assignees” more of the employee’s wages than is permitted by law. If an employee inadvertently, or through ignorance, authorizes a deduction for more than 50% of wages and the school complies, the assignment is invalid and the employee may file a wage claim. Thus, schools should be very careful when deducting wages based upon an assignment. An assignment is valid if all of the following conditions are met:  The assignment is in writing, specifies the transaction to which the assignment relates, and is signed by the employee.

 The employee’s spouse consents in writing unless the employee is legally separated, there is a judgment of divorce or the employee states that he is single.  If the employee is a minor, the assignment must be signed by a parent or guardian.  Where the assignment is made by a person who is unmarried or who is an adult or who is both unmarried and an adult, a written statement by the person making the assignment, setting forth such facts, is attached to or included in the assignment.  The employee states in writing that he has not made any other assignment involving the same transaction.  The school files a notarized copy of the assignment with the above statements.  At the time the assignment is filed with the school, no other assignment of wages of the employee is subject to payment and no earnings withholding order against the employee's wages or salary is in force.

The requirements relating to effectuating an assignment of wages discussed above do not apply to assignments for spousal or child support. 744 The requirements also do not apply to deductions where the employee authorizes the deduction in writing for paying insurance, taxes or contributions to funds or plans providing for death, disability, retirement, etc., or for contributions to charitable, educational, patriotic or similar purposes or for the payment for goods or services furnished by the school to the employee or his family. 745 Finally, the employee may revoke the assignment at any time. 746

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 195